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Hotel trends: Regionally stronger and more projects

New leaseholders and brands are less in demand, and a higher commitment in country markets with higher risks is definitely last on the list. This is one of the trend statements obtained from the spring survey for the "hospitality Inside Investment Barometer 2015".

AUGSBURG / HAMBURG – The continuing pressure on demand in the hotel market most likely motivates hoteliers and hotel property experts to diversify regionally in secondary and tertiary markets. New leaseholders and brands are less in demand, and a higher commitment in country markets with higher risks is definitely last on the list. This is one of the trend statements obtained from the spring survey for the “hospitalityInside Investment Barometer 2015”. In addition, most people surveyed are expecting that the yields will stabilise in the short term (in the next six to twelve months) and increase again in the medium term (24-48 months).

Andreas Loecher, Head of Division of Investment Management Hotel at Union Investment Real Estate GmbH, Hamburg, sees the following trend in the survey: “The stronger regional diversification emphasises that the chain hotel industry is still sometimes underrepresented in secondary markets. There is still potential to catch up. The strong demand for new brand-related hotels boosts developments as well – a race to catch up is taking place, especially in the budget and the midscale markets.”

The people surveyed assess the total development more positively than the development of their own businesses. Concerning new hotel projects, the optimism is still high, and their development opportunities are still estimated as “good” and “very good” according to 75 percent of the people surveyed. Concerning the industry’s turnover development, 73.5 percent of the respondents are happy, which is an increase of 4.2 percent.

However, the surveyed people estimate the market situation of their own businesses more cautiously than in fall 2014: compared to six months ago, twice as many surveyed are “dissatisfied” with the current market situation, 73.4 percent regard their own situation as good or very good (-4.2 percent). Accordingly, “only” 69.4 percent (instead of 79 percent from last time) are expecting good business within the next six months.

Based on this, the entire picture of the hospitalityInside Investment Barometer – initiated by the online trade magazine hospitalityInside.com in cooperation with Union Investment – remains stable: the good mood in the industry in spring 2015 has barely been impaired compared to the fall of 2014. The entire index decreased by 1.73 percent only and with 3811 points, it is at the same level as in spring.

HospitalityInside Investment Barometer Spring 2015 Public Version

Tatiana Rokou

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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